Chapter 7. Commencing Small Business Coaching

Supporting Documents for this Chapter:

• Self-Employment Allowance and Rental Assistance Factsheetsign-in required (sign-in required)

• Rental Small Business Coaching Application Formsign-in required (sign-in required)

• Change of Circumstances Notification Form -Small Business Coachingsign-in required (sign-in required)

Small Business Coaching helps Participants turn Business Plans into businesses that are Operating Commercially through the provision of personalised Business Mentoring and support for up to 52 weeks.

This Chapter outlines the eligibility requirements for Participants wishing to access Small Business Coaching. It also identifies how Participants can commence Small Business Coaching, which requires the Participant:

• being eligible, including by having an approved Business Plan

• completing the application process, and

• agreeing to a Small Business Coaching Agreement.

Participants may be eligible to commence Small Business Coaching if they:

• meet the Participant Eligibility criteria identified in the Referrals, Eligibility and Onboarding Chapter

• intend to operate their Business for their Required Hours each week throughout their Period of Small Business Coaching, to ensure viability and full-time operation within 12 months

• have had a Business Plan approved by their Provider in the past 12 months (see Business Plan Assessments)

• will be operating their Business under an appropriate business structure (see Possible Business Structures)

• will be at least 18 years of age at the time of their Small Business Coaching Commencement

• have not received Small Business Coaching in the past 12 months, and

• agree to enter into a Small Business Coaching Agreement with the Department.

🖂 Where a Participant has requested to access Small Business Coaching within the 12 month waiting period, Providers must submit a written request to the Department (Provider Lead), with a request to waive the waiting period inclusive of their justification for servicing. The Department will review all ‘Waiver’ requests on a case-by-case basis and notify the Provider in writing of the decision. The Small Business Coaching Fee is only payable once every 12 months per Participant. Providers should also note that this applies regardless of which Provider delivers Small Business Coaching.

The Required Hours of a Participant accessing Small Business Coaching must be identified in their approved Business Plan and must be on average 35 hours per week within 12 months except as outlined below.

Participants with part-time Mutual Obligation Requirements

Participants may have part-time Mutual Obligation Requirements due to their:

• caring responsibilities

• age (55+)

• temporary reduced work capacity

• Partial Capacity to Work, and/or

• status as a Disability Support Pension (Compulsory Participation Requirements) participant.

The Required Hours for these Participants should not exceed the hours specified in the Department’s IT Systems unless the Participant has volunteered in writing to do so.

• System step — The Required Hours of a Participant with part-time Mutual Obligation Requirements will be confirmed on their Participation Profile in the Department’s IT Systems. The Required Hours for a Participant with a Partial Capacity to Work or Temporary Reduced Work Capacity is their specified baseline work capacity, while the Required Hours for a principal carer parent or a Participant aged at least 55 years of age is 15 hours per week.

• Documentary evidence — Providers must retain Documentary Evidence confirming the medical condition, disability, caring responsibilities, or other activities of a Participant who wishes to operate their Business part-time (if not detailed in the Department’s IT Systems). This can include but is not limited to:

• birth certificates for children

• evidence of adoption or foster care agreements

• medical certificate (or other relevant documentation) outlining primary caring responsibilities for a family member

• medical documentation confirming the Participant’s requirement to work part-time due to a disability/medical condition

• education enrolment forms

• payslips

• a statutory declaration.

Participants may access Small Business Coaching for support running a Business that operates as one of the four following business structures. Participants must identify their chosen Business structure on their Small Business Coaching Application Formsign-in required (sign-in required) and provide the relevant evidence to the Provider (where required in accordance with Table 7‑A).

Table 7‑A: Business structures and required evidence

All Participants must complete the Small Business Coaching application process prior to commencing Small Business Coaching.

The application process:

• captures Participants’ details, including their bank details (where appropriate)

• allows Participants to complete their Tax File Number Declarations (where appropriate)

• allows Participants to make a declaration confirming their eligibility for Small Business Coaching.

• Documentary evidence — The Provider must retain Documentary Evidence for Participants who apply for Small Business Coaching offline, including:

• a signed Small Business Coaching Application Formsign-in required (sign-in required)

• a completed Tax File Number Declaration Form (if applicable).

  Note: In accordance with ATO Privacy Rules, Providers must not upload a copy of the Participant’s Tax File Number Declaration form in the Department’s IT Systems.

Participants may update their personal information via the Workforce Australia website while accessing the Services. However, to update their bank details, Participants must inform their Provider in writing or by submitting a signed Change of Circumstances Notification Form – Small Business Coachingsign-in required (sign-in required) to the Provider. The Provider must then send the Participant’s documentation to the Department at SBCAllowanceReviewTeam@dewr.gov.au.

• Documentary evidence — If a Participant updates their bank details before or after their Small Business Coaching Commencement, the Provider must retain a copy of the written correspondence or signed Change of Circumstances Notification Form – Small Business Coachingsign-in required (sign-in required).

Self-Employment Allowance is an allowance that supports eligible Participants while they develop their Business. Self-Employment Allowance is paid at the same rate as the single, 22 or over, no children rate of JobSeeker Payment, and the rate of payment is not affected by the income earned by a Participant through their Business.

To be eligible to receive Self-Employment Allowance, a Participant must be receiving an Income Support Payment on the calendar day before they transfer to Self-Employment Allowance. Self-Employment Allowance can only be paid during the first 39 weeks of a Participant’s time in Small Business Coaching.

To be eligible to receive Self-Employment Rental Assistance, a Participant must:

• have been receiving rent assistance from Services Australia or the Department of Veterans’ Affairs (DVA) on the day immediately before they start receiving Self-Employment Allowance

• have been receiving Rent Assistance under their current income support payment or pension, NOT as part of a Family Allowance payment; and

• no longer receiving an Income Support Payment which includes Rental Assistance

Self-Employment Rental Assistance can only be paid during the first 26 weeks of a Participant’s time in Small Business Coaching.

Self-Employment Rental Assistance eligibility is assessed after commencement of the Small Business Coaching Agreement and can only be paid if the Participant’s Services Australia or the Department of Veterans’ Affairs (DVA) allowance (including Rental Assistance) has ceased.

More information about Self-Employment Rental Assistance is available in the Self-Employment Allowance and Rental Assistance Factsheetsign-in required (sign-in required) and in the Rental Assistance Eligibility Formsign-in required (sign-in required).

For the Department to pay a Participant Self-Employment Allowance and (if eligible) Self-Employment Rental Assistance, the Participant must have:

• agreed to or signed a Small Business Coaching Agreement (Participant receiving Allowancesign-in required (sign-in required))

• completed an application form, including the Participant’s bank details

• completed a Tax File Number Declaration Form, and

• completed a Rental Assistance Eligibility Formsign-in required (sign-in required) (if applicable).

These forms must be completed and dated no more than 4 weeks prior to the transfer.

In processing a Participant's Tax File Number Declaration, the Provider must ensure they handle the Participant's Tax File Number in accordance with the Part A Guidelines: Privacy chapter.

The Participant may submit their completed Self-Employment Rental Assistance Eligibility Formsign-in required (sign-in required) to their Provider, or they may upload the form to the Workforce Australia websiteWorkforce Australia website.

In circumstances where the Participant is unable to have the Self-Employment Rental Assistance Eligibility Formsign-in required (sign-in required) physically completed by a Services Australia Officer, an electronic Centrelink Statement will be accepted in place of the hard copy form. Information on how to request an electronic Centrelink Statement can be found at the Services Australia website.

To confirm the transfer to Self-Employment Allowance, a notification from the Department’s IT System will be sent to the Participant confirming their upcoming Small Business Coaching Commencement.

• System step — The Provider must indicate in the Department’s IT Systems if the Participant will be receiving Self-Employment Allowance. If yes, the Provider must enter the following details in the Department’s IT Systems:

• the Participant’s bank account details

• the Participant’s Tax File Number Declaration details.

Payments will be made fortnightly in arrears from the next fortnightly pay run (which occurs on a Thursday), based on the Participant’s entitlement.

Note: BSB numbers are verified in the Department’s IT Systems. The Provider should contact the Department if a legitimate BSB number is displayed as invalid.

Participants who transfer to Self-Employment Allowance after their Small Business Coaching Commencement

Participants may transfer to Self-Employment Allowance after their Small Business Coaching Commencement if the transfer occurs during the first 39 weeks of their Period of Small Business Coaching.

Participants will have one opportunity to transfer to Self-Employment Allowance during their Period of Small Business Coaching. The transfer can occur when the Participant commences Small Business Coaching or within the first 39 weeks of receiving Small Business Coaching.

If these Participants transfer to Self-Employment Allowance after commencing Small Business Coaching, the Department pays the Participant Self-Employment Allowance fortnightly in arrears from that time until the Participant’s Period of Small Business Coaching has reached 39 weeks. Self-Employment Allowance is not backdated to the start of Small Business Coaching. Delays in notifying the Department of changes in circumstances will reduce the eligible period for Self-Employment Allowance.

Example:

When Peter commences Small Business Coaching, he is not on income support.

Peter begins receiving income support payments 9 weeks after he started the Small Business Coaching. Peter advises his Provider he is receiving income payments and asks to transfer from income support payment to the Self-Employment Allowance.

As Peter had already completed 9 weeks of his Small Business Coaching he will only be eligible to receive a maximum of 30 weeks of Self-Employment Allowance.

As soon as the Provider becomes aware of this, the Provider updates Peter’s agreement to indicate the allowance will be claimed. After both Peter and the Provider have signed an updated agreement, the Provider emails it to the Department for approval.

• System step — To start the process of transferring a Small Business Coaching Participant to Self-Employment Allowance, the Provider must:

  • System step — first collect the Participant’s bank and tax details,

  • System step — using the Department’s IT Systems, click the ‘View agreement’ link and select the ‘Claim for Allowance’ button, to choose the next available allowance start date and to enter the Participant’s bank and tax details,

  • System step — once complete, select ‘Finalise agreement for participant signature’. Print the Small Business Coaching Agreement (Agreement) for both the Participant and Provider to sign and date,

  • System step — upload the Agreement to the Participant’s Agreement Summary page and select the ‘Submit for Departmental review’ button, and

  • System step — email the Department at SBCAllowanceReviewTeam@dewr.gov.au, attaching the Documentary Evidence of the Participant’s bank and tax details and request the approval of the Participant’s new Agreement.

• System step — The Department's IT Systems will assess eligibility for Self-Employment Allowance every time a Participant’s record is accessed. If eligible, a message at the top of the page will appear advising ‘This participant is eligible for self-employment allowance’.

Participants may be eligible to continue receiving Income Support Payments after they commence Small Business Coaching. Remaining on an Income Support Payment will mean that the Participant also receives any related entitlements, which may include supplementary payments and access to a concession card.

Where a Participant opts to remain on an Income Support Payment while accessing Small Business Coaching, the Provider must remind the Participant of the importance of meeting any relevant income reporting requirements for Services Australia.

Participants who can remain on their Income Support Payment

Most Participants in receipt of Income Support Payments are required to transfer to Self-Employment Allowance upon their Small Business Coaching Commencement.

However, Participants can choose to remain on the full rate of their current Income Support Payment if they are receiving:

• Disability Support Pension

• Parenting Payment

• Age Pension

• Carer Payment

• Partner Service Pension (from the DVA), or

• War Widow(er)’s Pension (from the DVA).

Remaining on an Income Support Payment will mean that the Participant also receives any related entitlements, which may include supplementary payments and access to a concession card.

Participants who can remain on a partial rate of their Income Support Payments

If a Participant transfers to Self-Employment Allowance from an Income Support Payment that pays them a higher fortnightly rate than Self-Employment Allowance, Services Australia will automatically reduce that Participant’s fortnightly rate of payment by the fortnightly rate of Self-Employment Allowance.

Example:

Angela is a parent who receives JobSeeker Payment, and her rate of payment is $247 per fortnight higher than the Self-Employment Allowance rate of payment. Angela elects to transfer to Self-Employment Allowance when she commences Small Business Coaching.

When Angela commences Small Business Coaching, she begins receiving Self-Employment Allowance from the Department and Services Australia automatically reduce her fortnightly rate of JobSeeker Payment to $247 per fortnight.

Angela continues to receive a partial rate of JobSeeker Payment and Self-Employment Allowance while she operates her business and reports the income she earns through her business to Services Australia. Angela’s business becomes more profitable over time, so her fortnightly rate of JobSeeker Payment is reduced until it is eventually cancelled under the JobSeeker Payment income test.

Each Participant must agree to or sign a Small Business Coaching Agreement prior to commencing Small Business Coaching.

The Small Business Coaching Agreement can be generated in the Department’s IT Systems after the Participant has completed the Small Business Coaching application process and the Provider has approved a Business Plan for the Participant.

The Provider must send the Small Business Coaching Agreement to the Participant with their agreed Small Business Coaching Commencement date for consideration and agreement. The agreed date must be a scheduled Self-Employment Allowance pay day, which occurs every second Thursday in accordance with the Self-Employment Allowance Pay Calendarsign-in required (sign-in required).

The Provider must explain the Participant’s obligations when commencing and while receiving Small Business Coaching and advise them to carefully read and understand all the terms of their Small Business Coaching Agreement. In doing so, the Provider must ensure that the Participant is aware of:

• the frequency, timeframes and process involved in the Participant’s submission of Quarterly Reports

• their obligation to maintain their Business Insurance throughout their Period of Small Business Coaching

• the frequency and expected timeframes for the delivery of Business Mentoring, and

• the Participant’s obligation to maintain contact with the Provider, including by returning missed calls and responding to emails.

The Provider must ensure Participants are aware that not complying with these obligations within the specified timeframes may result in their Self-Employment Allowance and Self-Employment Rental Assistance (if applicable) not being paid.

• System step — To send the Participant the Small Business Coaching Agreement online, the Provider must enter the proposed Small Business Coaching start date into the Department’s IT Systems and select ‘Send online’.

Once a Participant agrees to the Small Business Coaching Agreement online, the agreement is automatically sent to the Department for approval.

Note: If a Participant is signing the Small Business Coaching Agreement offline, the Provider must manually send the Small Business Coaching Agreement (signed by the Participant) to the Department via email for approval.

Regardless of whether a Participant’s Small Business Coaching Agreement is completed online or offline, the Department must receive it at least 5 Business Days prior to the scheduled Small Business Coaching Commencement date.

• System step — If all requirements are met, the Department approves the Participant’s Small Business Coaching Commencement in the Department’s IT Systems. The Department’s IT Systems use the Small Business Coaching Commencement to trigger payment of the Small Business Coaching Fee and to use one of the Provider's Small Business Coaching Places.

The Department’s IT Systems advise Services Australia when the Participant commences Small Business Coaching and will trigger the exiting of the Participant from the Other Program Provider’s caseload (where applicable). Where the Participant is an Inclusive Employment Australia Participant or a Parent Pathways Participant, the Participant is not automatically exited from the Other Program Provider’s caseload and will be concurrently serviced by the Provider and their Other Program Provider.

If any Other Program Provider will concurrently service the Participant while accessing Small Business Coaching, the Provider must advise the Other Program Provider of the Participant’s Small Business Coaching Commencement.

• Documentary evidence — If the Participant has completed the Small Business Coaching application process offline and/or signed the Small Business Coaching Agreement offline (not via the Workforce Australia websiteWorkforce Australia website), the Provider must email to SBCAllowanceReviewTeam@dewr.gov.au the Participant’s:

• signed Small Business Coaching Agreement for the Department’s approval

• completed and signed Small Business Coaching Application Formsign-in required (sign-in required) (if not completed online)

• completed and signed Tax File Number Declaration Form (if applicable and not completed online).

The Provider must also retain a copy of these documents on the Participant’s file.

Please note, under the Privacy (Tax File Number) Rule 2015 which was issued under Section 17 of the Privacy Act 1988, Tax File Declaration Forms are not to be uploaded in the Department's IT Systems at any time. Please follow the procedure outlined in the next section when submitting the Tax File Declaration to the Department.

When emailing the Department at SBCAllowanceReviewTeam@dewr.gov.au, the Provider should apply the following naming protocol for email subject lines.

Small Business Coaching commencement paperwork

When the Provider emails Small Business Coaching commencement paperwork, the subject line should be of the following format:

proposed commencement date (YY/MM/DD) | Provider organisation code | JSID | SBC APP | First Name | Last Name.

Example:

If John Doe who has a Jobseeker ID of 123456789 was looking to commence Small Business Coaching with Provider 'ALTO' on 18 August 2022, the subject line would be: '220818 ALTO 123456789 SBC APP John Doe'.

General correspondence

When the Provider emails the SBC Allowance Review Team for all general correspondence the subject line should be of the following format:

date of the correspondence being sent (YY/MM/DD) | Provider organisation code | JSID | Topic | First Name | Last Name.

Example: If Provider 'ALTO' emailed the SBC Allowance Review Team on 7 October 2022 regarding the suspension of Jane Doe who has a Jobseeker ID of 987654321, the subject line would be: '221007 ALTO 987654321 Query regarding suspension of Jane Doe'.

For privacy and records management reasons, the Provider should (where practical) only include the details of one participant per email.

(Deed Reference(s): Clause 90.2)